Glossary - V

Valuation (1)

The estimated value of an asset, depending on the purpose for which the valuation is required; for example "asset replacement value", for determining maintenance levels, or "market value" for life cycle costing. Source: G1

Valuation (2)

The estimation by a registered valuer of the current market value for any type of real estate, including land, building, other improvements, goodwill and licenses, usually set out in a written report. Valuations are carried out for purposes of purchase, mortgaging, leasing, compensation, taxation, rating etc. Source: T1

Value Analysis

A systematic analysis to identify the essential functions of systems, equipment, facilities and procedures that are consistent with purpose, performance, reliability and manageability. This analysis will facilitate the achievement of those functions in a way that represents the optimum value. Source: D1

Value Chain

The value that each life cycle asset management activity or tertiary quality element brings to the service delivery of the organisation. Source: G1

Value Engineering

The application of value analysis to building or civil works projects, usually by a multidisciplinary team, to achieve the required function of elements of a facility and the entire facility at the lowest overall cost for a specified level of quality. Source: G3

As above, with the aim for optimum value rather than lowest cost. Source S2

Value Management

The comprehensive application of value analysis to both financial and technical management activities. Source: G3

A structured, systematic and analytical process, that seeks to achieve best value for money by providing all the necessary functions, consistent with required levels of quality and performance. Source S2: AS 4183

Value Management - Project Design

A structured, systematic and analytical process undertaken to ensure that the project design achieves value for money while meeting functional objectives. Source: D1

Value Management - Strategic

A structured, systematic and analytical process undertaken at the concept evaluation phase of the project initiation process to quantify and verify needs. Source: D1

Variable Costs

Costs that change in proportion to volume levels, as there is a direct relationship. Source: G1

Variation

An addition to, omission from, or alteration to, the works under a contract or to the contract conditions, normally executed by means of a 'variation order' to the contractor from the Principal or the Superintendent as the agent of the Principal. Source: G3